Savings banks in East Germany: Consumers are taking out more loans again
Private customers of East German savings banks are taking out more loans again, especially for housing construction. Business had collapsed due to high interest rates.
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Consumers in eastern Germany took out loans from savings banks more frequently in the first half of the year © Soeren Stache/dpa
Berlin. Consumers in eastern Germany took out loans from savings banks more frequently in the first half of the year, especially for housing. In total, savings banks in Brandenburg, Mecklenburg-Western Pomerania, Saxony-Anhalt and Saxony granted around 5.1 billion euros in loans, according to the East German Savings Banks Association.
Around half of this sum was lent for the construction of houses and apartments. That was three percent more than in the same period last year. The total amount of new loans fell by around one percent. However, the demand for loans has increased again, the association stressed.
Sparkasse: New lending business with private customers is growing
Due primarily to the high interest rates, loan commitments had fallen significantly by more than a third in the first half of the previous year, and private loans by almost half. Now new lending to private individuals has increased again by almost nine percent, and in residential construction by three percent. Only for companies and the self-employed have loan commitments fallen by ten percent.
A trend reversal also appears to be emerging in the deposit business. People apparently no longer need to rely on reserves to such an extent in order to cope with their rising living costs due to inflation, said association managing director Wolfgang Zender.
